If I open an account with 3.0% APY and deposit $200 a month....???

Question

If I open an account with 3.0% APY and deposit $200 a month...how much would I make on interest?? This is an account I am thinking of opening for my son who is 21 months. It's from ingdirect, is it a good savings account? What will he make in interest? Thanks. Sorry I am horrible at math....

Answer 1

Saved over the next 16 years (I assume you won't let him have it until he's 18) that'll come out near 51,000 if interest rates stay at their current position (last year this time of month it was near 4.6%-4.8%).  At least 10,500 of the 51,000 will be all from interest if you deposit 200 a month for the next 16 years.

Look for a compounding interest calculator on the internet if you want some better figures.

EDIT:

Interest rates for savings fluctuate with the condition of the economy.

EDIT:

I can't really help you with the ING vs Etrade, I don't really keep track of them to that extent.  One or the other could have  unstable interest rates (changing from one month to the next resulting in lower average for that year).